[en] A group of Transmission System Operators (TSO’s), expert companies and leading research centers in power system analysis and applied mathematics, under the coordination of Tractebel Engineering, has joined to develop methodologies and software tools able to monitor, simulate and analyze the European Transmission Network (ETN). This project called PEGASE is part of the 7th Framework Programme of the European Commission. Its budget is about 13 MEUR. It started in September 2008 and will last for 4 years. It will define the architecture, data flows and algorithms of an ETN state estimator making use of emerging technologies like the GPS-synchronized Phasor Measurement Units (PMUs). Giving access to the state of the ETN to each TSO would improve dramatically their coordination provided that new ideas to display huge amounts of ETN data are proposed. This is also part of the research. The static simulation of the ETN requires to take into account the various operating rules and control practices of each national grid. New algorithms will be developed, based on optimization techniques and sound engineering judgment. The dynamic simulation of the ETN is of paramount importance for better control and security assessment of this large-scale system. PEGASE will build a prototype of a simulation engine capable of reproducing all kinds of behavior of the ETN. Such an engine will be designed to play extreme scenarios up to the complete black-out of Europe and its subsequent restoration. It will require algorithmic breakthroughs and advanced computer architecture. It will be embedded in a mock-up of a real time dispatcher training simulator. Simplified dynamic simulation tools, able to run much faster than real time, will be developed for on-line security assessment. If the main challenge of the project remains the size and the heterogeneity of the ETN, special attention will be paid to modeling methodology. Component models have to face the complexity introduced by IT and power electronic technologies presently used in power systems. Standard model libraries reach some limits and a greater modeling flexibility is needed to introduce new devices in software tools or exchange models between operators.